Journalize the following selected transactions of Miramax Rentals. Omit explanations. Aug. 1 Purchased two new saws on credit at $425 each. The saws are added to Mirmax's rental inventory. Payment is due in 30 days.
8 Accepted advance deposits of $125 for tool rentals that will be applied to the cash rental when the tools are returned.
20 Charged customers $1,250 on account for tool rentals. Payment is due within 30 days.
31 Paid utility bill for the month, $180.
31 Received $600 in payments from the customers that were billed for rentals on August 20.

Answer and Explanation:

The journal entries are shown below:

On Aug 1

Inventory  Dr     $850

      To Accounts payable $850

(Being inventory purchased on account)

On Aug 8

Cash Dr     $125

      To Advance deposit a/c $125

(Being cash receipts is recorded)

On Aug 20

Accounts Receivable Dr $1250

         To Rental Revenue  $1250

(Being revenue is recorded)

On Aug 31

Utility expense Dr $180

       To Cash $180

(Being cash paid is recorded)

On Aug 31

Cash Dr $600

      To Accounts Receivable a/c $600

(Being cash received is recorded)

typically a loft will include modern kitchen and bathrooms, this increases the price tag. lofts also have a good amount of open space, this requires more heating and electricity. lofts are also in older buildings, this means that maintaining the location increases the bill. keep in mind this is without talking about the high state and property taxes.

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